Question

■Choose any country except for Gulf areas countries, and explain the following topics according to the country you have chosen

■1- State what are the objectives of collecting taxes (financial, social or economically). Please state why they are targeting this exact objective.

■2- State their tax system structure ( Please identify each type of tax structure according to the slides. (Ex: do they have direct taxes and indirect taxes, personal or in kind taxes and then complete till the sales and value added tax)

■3- For each type of tax identified in the previous question; Please stat the tax rate structure they are using in your country ( giving exact percentages, ex: sales tax in Belgium is 20% progressive rate)

■4- Compare the tax system structure they are using with the existing Egyptian tax system structure.

Answer 1

The chosen country is India.

1- The main objectives of collecting taxes in India are varied:-

Social Welfare- Millions of people whose income is below poverty line are provided subsidized food items, transfer payments and other services.

Economic Development- In order to develop infrastructure, provide better amenities, safety and security, and services to the citizens, it is important that government invests enough money.

2- Tax structure in India can be divided into direct and indirect.

Under direct tax comes

( i ) Income tax.

( ii ) Wealth tax.

( iii ) Corporate tax.

( iv ) Capital gains tax.

Indirect tax mainly comprises of Goods and Services Tax ( sales tax ).

3 - Income tax slabs ( Direct Tax )

Indirect Tax slabs ( Indirect tax )

1. No tax. ( Nil )

2. GST Tax Slab of 5%.

3. GST Tax Slab of 12%.

4. GST Tax Slab of 18%.

Income Tax Slab	Tax Rate
Up to Rs 2.5 lakh	NIL
Rs 2.5 lakh to Rs 5 lakh	5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh	10%
Rs 7.5 lakh to Rs 10 lakh	15%
Rs 10 lakh to Rs 12.5 lakh	20%
Rs 12.5 lakh to Rs 15 lakh	25%
Rs 15 lakh and above	30%